Abolish the Fed, Says Sun Microsystems Co-founder

Discussion in 'News / Current Events' started by Revmitchell, Sep 18, 2013.

  1. Revmitchell

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    Feb 18, 2006
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    On CNBC’s “Squawk Box” on Tuesday, Sun Microsystems founder and Harvard-trained economist Scott Mc Nealy asserted the Federal Reserve has become a "marketing department" for the government and "shouldn't be in any business at all. They shouldn’t be in the business of taxing people by devaluing the dollar, and they shouldn’t be in the business of setting expectations."

    He said the Fed should not be able to do "quantitative easing without going through Congress. It's an out of control branch of the U.S. government" that should be abolished:

    “The government shouldn’t be in business, they shouldn’t have a marketing department, and they shouldn’t be taxing through deficit spending and quantitive easing,” he said.

    "If you're running deficits and you're printing money, you're devaluing the dollar and the buying power of every thing denominated in U.S. dollars, assets and income," McNealy said. "The consumer’s feeling that."

    Read more: http://newsbusters.org/blogs/tim-gr...ays-sun-microsystems-co-founder#ixzz2fDiKhXxa
  2. pinoybaptist

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    Mar 17, 2002
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    Central Banks are an important part of any government and system.
    As an economist he should know that.
    Maybe more than abolishing the feds, we need a president strong enough to handle hostility and criticism for demanding a regulation that cut backs if not totally prohibit the depositing of US dollars into foreign bank accounts, and the recall of those deposits into US banks.
    The Feds can then buy back any surplus money by issuing T-bills or whatever.
    Or maybe, this fellow is one of those with Swiss bank accounts ?
  3. InTheLight

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    Dec 17, 2010
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    I didn't see his suggestion for replacing the Fed. I wish there was a better system but so far, this is it. I did notice he said the Fed was a "branch of government". That's sure to get come cat-calls from the conspiracy peanut gallery.
  4. thisnumbersdisconnected

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    Apr 11, 2013
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    The Fed is inherently corrupt simply by its secrecy in reaching financial market decisions. It does need to be replaced, and there are actually some pretty simple guidelines that, for the new system to be successful, would assure ...

    1. ... it would be entirely transparent. The only reason for secrecy is to hide something. An efficient system working in the public’s best interest would have nothing to hide and its administrators would have nothing to fear.
    2. ... it would be fair, sustainable and create an environment of prosperity for all. Numerous non-interest bearing systems at the federal and state level have been shown to be mathematically sound and would produce economies that were both sustainable and equitable.
    3. ... it would not be based on debt with interest (Usury); certainly at the Federal level. Other systems go further and propose non-interest bearing systems throughout the entire financial system. This requirement is based upon the knowledge that any system that operates under a Usury principle is unworkable since it can be shown to be mathematically unsustainable.
    4. ... it would have sufficient regulatory and audit controls built in that would identify any irregularities quickly and decisively and identify those responsible for the problem.
    5. ... it would prohibit the practice of debt backed money at the federal level, returning the power of money creation to a new department of the Federal Government (We the People) established by Congress as enumerated by the U.S. Constitution Article I Section 8.
    6. ... it would eliminate excessive or “toxic” debt and derivatives from the entire financial system, and restructure balance sheets to produce workable debt to income ratios. This could be accomplished by several mechanisms:

      • Individuals and businesses could be credited with, or receive a refund of tax dollars or recover interest payments that would be used to directly pay down existing debt.
      • All banks and financial institutions could be reorganized through a special bankruptcy procedure to eliminate unserviceable debt and derivatives. All banks will survive this process and will exit their bankruptcy with 10 to 1 fractional reserve ability, a level of leverage that is safe and will be capped by law.
      • State balance sheets would be restructured and all states would create State Chartered Banks based on the successful model of the Bank of North Dakota. Additionally, these banks would assume the roles and functions formerly held by the 12 Regional Federal Reserve banks, thus decentralizing control but in a coordinated manner where all states would benefit proportionately and fairly.
      • These State Chartered Banks would oversee and regulate the banking operations of the local banks operating within their state.
    7. ... it would ensure that the amount of money in circulation as measured by M-1, M-2 or M-3 would be adjusted based upon market conditions as measured by accurate and unbiased economic measurements and reporting. This would be achieved with 100% transparency in all data gathering and statistical methods, allowing the market to 'police' the government.
    8. ... it would create effective controls that integrally monitor the overall money supply in relation to the cumulative prices of all asset classes. Such a system would essentially eliminate any measurable inflation and would self-adjust the amount of money in circulation.
    9. ... if interest rates were allowed, they would be set by the free market. This means no more long term inflation or deflation.
    10. ... it would prohibit special interest money from contributing to political campaigns. This targeted political reform is necessary to keep the political system functioning for those who it is supposed to serve. Without this cornerstone to the reform, history proves that the system will not last long, as those with large reservoirs of money will eventually co-opt the system for their own purposes.
    This isn't perfect either, but it will provide more transparency and help assure confidence of the American people in their financial system.
  5. poncho

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    Mar 30, 2004
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    #5 poncho, Sep 18, 2013
    Last edited by a moderator: Sep 18, 2013

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